Acknowledgement

Notes on the Contributors 

1. Practices of Korea’s Development Cooperation and Their References to China / Mao Xiaojing
Introduction 
An Overview of Korea’s ODA  
Management of Concessional Loans  
Training Program 
Aid Evaluation 
Conclusions 
References 

2. Beyond the Miracle of the Han River: Some Pro-Growth Philosophy in Korea’s Rural Development: The Saemaul Movement and Africa’s search for Agricultural Stimulation  / Ivor Agyeman-Duah
Introduction 
Korea: A Brief Historical Transition.  
Cultural Definition and Review Arguments. 
Agriculture in Korea, the Saemaul Movement and CulturalPhilosophy
Objectives of the Movement. 
Successes of the Movement 
Cultural or Philosophical Factors to Success 
Is the Movement Adoptable to Africa? 
Conclusion 
References 

3. Building Trans-Pacific Economic Partnerships: The Case for a Mexico-South Korea Free Trade Agreement / Juan J. Palacios
Introduction 
Trans-Pacific Trade Liberalisation: The Thrust of Binding Agreements 
Mexico’s and South Korea’s Trade Policies 
South Korea’s FTA Policy 
Economic Intercourse between Mexico and South Korea
Investment 
The Long Road toward a Mexico-South Korea FTA 
Assessing the Trade Potential between Mexico and South Korea 
The case for a Mexico-South Korea FTA 
References 
Appendix 

4. Trade and Investment Potential among BCIM Countries: Prospects for a Dynamic Growth Quadrangle / Mohammad Masudur Rahman
Introduction 
Rationale of the Study 
Current Status of Trade and Investment Flows among the Member Countries 
BCIM Trade Potential - A Gravity Analysis 
Challenges Facing the BCIM Countries 
Conclusion 
References 

5. 21st Century Global Economic Governance: Evolving Architecture, Emerging Issues, and Asia’s Role / Srinivasa Madhur
Introduction 
Evolving Institutional Architecture
Emerging Issues  
Asia’s Potential Role  
Converting Asia’s Potential into Reality: The Challenges Ahead 
Conclusion  
References 

6. Strategic Materials, Scarcity, Conflicts: A Geopolitical Approach / Stefania Paladini
Introduction: Scarcity and Conflict in XXI Century 
A Geopolitical Approach to Resources Management  
Conclusion 
References 

7. European Development Policies at the Crossroads / Wolfgang PAPE
Introduction  
Individual EU Member States’ Policies 
European Commission 
Conclusions 

8. Economic Integration of Russia, Belarus, and Kazakhstan and Tax Harmonization / Olga Shuleiko
Introduction 
Regional Integration as a Framework for Tax Harmonization 
Customs Union of EuRasES: What Changed? 
Tax Policy Issues in the Context of Common Economic Space 
Conclusions
References 

9. Egypt’s International Competitiveness: A Product Level Analysis / Hossam Younes
Introduction 
Market Shares of Egyptian Exports and Constant Market share Analysis Methodology 
Conclusions 
References 

10. The Influence and Countermeasures of Population Aging on the Economic and Social Development: Based on the Comparison between South Korea and China / Tan Yongsheng
Introduction 
Body 
Conclusions 
Reference 

11. Value Premium and Institutional Ownership in Chinese Stock / Jiyoun An, Kin-Yip Ho, and Lanyue Zhou
Introduction 
Background 
Hypothesis Development 
Methodology and Data  
Estimation Results 
Discussion and Conclusion 
References 

12. Influence of Transportation Corridors Across Yellow and Bohai Sea on the Economic Cooperation and Development in NAIR / Xiang Aibing

The Korea Institute for International Economic Policy (KIEP) was founded in 1989 as a government-funded economic research institute. It is a leading institute focusing on international regional studies with strong cooperative relationship with the world’s leading research institutes. The Center for Emerging Economies Research (CEER) has been enforcing visiting fellows program since 2008 in an effort to vitalize exchange among internal and external institutions and enrich competence in regional studies. This program cultivates close network and promotes cooperation through sharing of research outcomes and information among eminent scholars and experts of regional studies. ‘KIEP Visiting Scholars’ Paper Series’ is an accomplishment of this program that enabled higher understanding of international regional studies.

This study reviews Mexico’s economic performance under NAFTA, focusing on the changes in major economic indicators, and particularly, employment and income before and after the inception of NAFTA. There have been a significant improvement in inflation, budget deficits, and exports and FDI, but not as successful as in the expansion of economic activity and employment during the post-NAFTA era. We find a source of Mexico’s economic problems today in a lack of its appropriate domestic development policy. We also draw some implications for Korea’s future trade policy from the experience of Mexico under NAFTA.

Executive Summary

I. Introduction

II. Overview of Triadic Sanctions

III. A model of triadic sanctions
1. A Stage Game
2. An infinitely repeated sanction game

IV. US-Iran Sanction
1. Evolution of the US-Iran Sanction
2. Insights from the game theoretic Analysis

V. Conclusion

Reference

This paper presents a work-horse model to analyze the mechanism of triadic sanctions, where the receiver of the sanction is not the actual target. With a motivating example of the US sanctions against Iran and a simple game theoretic framework, we show that the threat of such sanction is not credible in situations where the game ends after single stage, or when the entities are not concerned with future transactions amongst each other. In a repeated game setting, on the other hand, the threats become credible, but the level of enforcement would differ across firms/countries depending on the economic interdependency and how the parties perceive the probability that the games would continue to the next period.

About the Editors/Contributors  
Foreword  
Message / Wook Chae  
Message  / Woosang Kim  
Opening Remarks / Joong-Keun Kim  
Opening Remarks / Skand R. Tayal  
Speech / Sung-Joo Han  
Speech / Chulsu Kim  

Preface  

Introduction  

Section I  Recent Economic Trends
1.  Korean Economy in Transition Toward an Advanced Economy:  Prospects and Challenges / Choong Yong Ahn and Kyttack Hong  
2.  The Indian Economy: Recent Trends and Prospects / D.K. Srivastava  

Section II  Trade Prospects and Non-Tariff Measures
3.  India-Korea Trade and Non-Tariff Barriers / Nisha Taneja, Pallavi Kalita, and Swati Saluja  
4.  Two Years In: Achievements and Challenges in the Trade Sector of the Korea-India CEPA / Choongjae Cho  

Section III  Foreign Direct Investment
5.  Trends of FDI Flows into India and Korea / Chang-Ho Kwag  
6.  Investment in the Indo-Korea CEPA / Saon Ray and Neetika Kaushal  

Section IV  Services and Green Energy
 7.  Current Status of Indian Green Energy Industry and Cooperation between Korea and India / Hyun Jae Kim and Chankook Park  
 8.  The Role of Culture in Economic Activity and Exchange Parthasarathi Shome  

Section V  Global Security Issues
 9.  Rising Powers and Asia’s Stability: Strategic Convergence between India and South Korea / W. Lawrence S. Prabhakar 
10.  India’s Changing Relations with the United States and China / Sanjana Joshi  
11.  Four-Layered Security Cooperation between South Korea and India / Cheol Hee Park  

This volume edited by Parthasarathi Shome and Choong Yong Ahn brings together papers and speeches presented at the 10th dialogue. It analyses the Indo-Korea CEPA in terms of the flow of goods, services and investment as well as discussions for collaboration on other sectors that are under consideration between these two economies. It also identifies the possibility to improve the relationship between the two countries through a revision of a number of existing tariffs, non-tariff barriers related to trade and investment linked policies. We hope that this volume will enrich our understanding of Indo-Korea relations and contribute to more significant relations between the two countries.

This volume is a collection of presentations made at the KIEP international seminar, “Economic development strategy of China’s Eastern Coastal Region during the transition period” in November, 2011. The first part entitled, 'Industrial restructuring and sophistication', analyzed today's shifting industrial structure and concomitant problems in Liaoning, Jiangsu, and Zhejiang provinces. The second part entitled, ‘New growth engines by Regions,’ elaborates on regional economic development strategies and strategic industries in Guangdong, Shandong, and Greater Capital Economic Zone that includes Beijing, Tianjin and Hebei province. 

This latest volume contains analysis of economic development and current issues involving Chinas coastal regions, along with appropriate response measures for business people, researchers, and policy makers. It is expected that this collection will enhance our understanding and eventually promote greater cooperation with China.

 

2011 Summaries of Research Report

Message from the President
Mission and Brief History

I. Overview of KIEP's Projects
1. Overview of Projects
2. Affiliated Bodies and Research-Related Activities

II. Review of 2011 Projects
1. Research Trends in 2011
2. Basic Research Tasks

III. Research Plan for 2012
1. Research Plan for 2012
2. Basic Research Tasks

IV. Appendix
A Glimpse at KIEP
List of Publications (2011)

 

In 2011, those of us at KIEP had designated four main research topics we deemed most pertinent to current circumstances, and engaged in twenty major projects in line with those topics. These include negotiations for liberalization of the services market and other multilateral trade issues in response to WTO regime reforms and other changes in the world trading environment; economic cooperation in APEC and other regional issues; and current bilateral trade issues including free trade agreements. KIEP conducted research to address changes in the macroeconomic environment surrounding Korea, such as changes the internationalization of the Korean won as a result of Korea's increasing prominence on the international economic scene, and presented basic resource materials and provided directions to prepare for changes in North Korea. Policy responses to global inequalities in light of the current rapid transnational movement of capital were forwarded, in addition to measures to facilitate Korea's entry into foreign markets and attract foreign investment. In recognition of rising demand for research on the world's regions, KIEP did not limit itself to providing data on Korea's major trading partners such as the US or China, but made efforts to provide basic data on Central/South America and Africa that had hitherto been lacking.

This book presents a detailed record and an in-depth analysis of the negotiations that took place within the G20 – the premier forum for international economic cooperation – to achieve historic outcomes on the IMF quota and governance reforms in the lead up to and at the G20 Seoul Summit in 2010. It captures the entire negotiation process that was adopted to shift quota shares and improve governance structure of the IMF, thereby enhancing its legitimacy, effectiveness and credibility. We, the authors, worked on the preparation of the Summit as working level staff and were privileged enough to get involved in one of the most successful multilateral negotiation processes in action. As such, we thought our experiences and analyses of the negotiation process might be helpful to others who may be involved in negotiation processes from time to time or carry out research on negotiations. So we decided to share our experiences and analyses by writing this book.

As the massive global financial crisis swept the world in 2008, one of the major tasks the G20 Leaders focused on at their first Summit in Washington was the reform of the international financial institutions. The G20 delivered its first concrete result in April 2009 when it agreed to increase the IMF resources by more than 500 billion dollars at the London Summit. Then, in Pittsburgh in September 2009, the G20 Leaders further agreed to shift at least 5 per cent share of the IMF quota to emerging market, developing and under-represented countries and undertake governance reforms. But making promises was the easy part. Delivering on them required a lot of hard work and careful negotiations. That’s why when these commitments were finally delivered at the Seoul Summit in November 2010, people said it was the most comprehensive reform in the history of the IMF. While it took many years of negotiations to achieve this result, the book mostly focuses on the negotiations that took place between the Pittsburgh Summit and when Korea hosted the G20 Summit in Seoul.

Shifting IMF quota shares amongst countries is a zero-sum game. If one country wants its quota share increased, it cannot be achieved without a corresponding decrease for some other countries. That is why the IMF quota share reform process was so arduous. Although the 2010 IMF reform was agreed in almost record time, when compared to past agreements, it too was a rough journey consisting of many formal and informal meetings, disagreements and, at times, complete stand-offs in the course of negotiations. This book meticulously records and analyzes the whole 2010 IMF reform negotiation process. But rather than provide a witness statement in a chronological order, the authors divided up the negotiation process into four stages – preparation, exploration of negotiation strategies, actual negotiation and settlement – and evaluated what happened in each stage against a theoretical framework for multilateral negotiation. In addition, the IMF’s major functions, structure and role are explained throughout the book. The authors adopted this approach to enhance readers’ understanding of the issues and provide meaningful insights to those who may have to go through similar negotiation processes in the future.

Finally, the book does not record or evaluate Korea’s role as one of the participants of the negotiation. Rather, it records and evaluates its role and position as the chair country of the G20. However, the book is not an official record or assessment of the implications and achievements of the Seoul Summit.  Official records and assessments can be found in the White Paper published by the Presidential Committee for the G20 Summit. This book was written by working level staff to complement the White Paper by focusing on technical aspects of negotiations and providing lots of firsthand experiences with the negotiation in the form of anecdotes.

In conclusion, we the authors hope that this book will enhance readers’ understanding of the IMF quota and governance reforms, but at the same time provide good insights to general procedures and characteristics of international negotiations. We look forward to it being used as a practical guide for other negotiations in the future.